NOIDA: In a major relief to lakhs of aggrieved buyers who are forced to wait for possession of their homes for years, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has decided to auction unsold flats of defaulting builders to pay back investors seeking refund in delayed housing projects.
While Rera benches have taken several steps against defaulting builders across the country, this is perhaps the first time that such a move has been announced in India under the new real estate law.
Officials said UP-Rera will soon float a portal for the global e-auction of unsold properties of cash-strapped builders who have been issued recovery notes. A recovery note is a notice sent by Rera that seeks a refund of money owed by homebuyers.
“When a buyer approaches UP-Rera to seek a refund on their investment, we issue an order for a refund and the district administration is sent a recovery note to collect the money from the defaulting builder. But because most of the builders are cash-strapped, the notes are not honoured,” Balwinder Kumar, member of UP-Rera, told TOI.
“None of the 660 recovery notes sent to the builders through the district administration in Gautam Budh Nagar has been honoured by the defaulters. So, we have now decided to auction unsold inventories of such builders to return the money to the aggrieved buyers stuck in delayed projects, should they want it back,” he added. With this move, all builders against whom buyers have moved UP-Rera stand to lose their unsold inventory for refunding buyers who want to exit the delayed projects.
“There are two kinds of refunds — one where a builder has not been able to deliver the flat and the buyer wants to exit the project. The other one is where the builder has promised penalties for delay but has not paid any late fine to buyers. In both the cases, the money accrued from the auction will be used,” Kumar said.
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While Rera benches have taken several steps against defaulting builders across the country, this is perhaps the first time that such a move has been announced in India under the new real estate law.
Officials said UP-Rera will soon float a portal for the global e-auction of unsold properties of cash-strapped builders who have been issued recovery notes. A recovery note is a notice sent by Rera that seeks a refund of money owed by homebuyers.
“When a buyer approaches UP-Rera to seek a refund on their investment, we issue an order for a refund and the district administration is sent a recovery note to collect the money from the defaulting builder. But because most of the builders are cash-strapped, the notes are not honoured,” Balwinder Kumar, member of UP-Rera, told TOI.
“None of the 660 recovery notes sent to the builders through the district administration in Gautam Budh Nagar has been honoured by the defaulters. So, we have now decided to auction unsold inventories of such builders to return the money to the aggrieved buyers stuck in delayed projects, should they want it back,” he added. With this move, all builders against whom buyers have moved UP-Rera stand to lose their unsold inventory for refunding buyers who want to exit the delayed projects.
“There are two kinds of refunds — one where a builder has not been able to deliver the flat and the buyer wants to exit the project. The other one is where the builder has promised penalties for delay but has not paid any late fine to buyers. In both the cases, the money accrued from the auction will be used,” Kumar said.
HouseBrand Real Estate
We will negotiate the best Property and land deal in the market for you and support you throughout the process of Property and land acquisition. Our main objective is to get you the best Property and land in the region of your choice and that too in your budget only. Contact us for Best Deals and offers.
For Any Queries Contacts us
Phone- 9811135518
E-mail- housebrandrealestate@gmail.com
Web- housebrandrealestate.in
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